Investing: free money? If someone isn’t looking at the fixed income market first, at risk free assets such as US Treasuries, they really don’t know the fair value of riskier assets such as stocks. In other words, The Fixed Income market provides deeper insight, and can help drive more accurate forecasts of share prices going forward than simply looking at share prices or associated ratios. One of theFUNDAMENTAL DRIVERS OF SHARE PRICESof risky assets, is the risk free rate. Specifically while The Fed has been resolute there would only be three, starting sometime in 2H 2024, Fed Funds Futures have suggested there would be six, starting in March 2024.

Source: The Guardian January 06, 2024 06:19 UTC